Given market concerns over the Japanese government’s more expansive fiscal stance, interest rates on long-term government bonds once again showed a strong rise this week and were trading at record levels. The view that Prime Minister Sanae Takaishi may expand the spending package to support the economy has contributed to the weakness of the yen and, in this sense, raised concerns about worsening inflation in the future. According to experts, if new interest rate hikes enter the Bank of Japan’s radar once and for all, there are risks to the “carry trade” strategy, which could, as has happened in some recent events, punish the currencies of countries with high interest rates, such as Brazil.